Gold and Silver: How to Calculate Your Real Profit

“I bought my gold for $1,000, someone is offering me $1,100, so I have made 10%.” Not quite. Between purchase fees, selling fees, and currency exchange, the real profit is often different from what you imagine. Here is how to calculate it correctly.

Real profit = net sale price − total purchase cost

If the result is negative, it is a loss.

All amounts below are examples.

At purchase:

At sale:

Real profit: 1,070 − 1,020 = $50

Return: 50 ÷ 1,020 × 100 = approximately 4.90%

If you had only compared the sale price ($1,100) with the gold price ($1,000), you would have thought you made 10%. Here, fees roughly halve the return.

This is the most common mistake. If your invoice already shows $1,020 including fees, do not add delivery and payment fees again: you would get $1,040, an incorrect cost. Similarly, if the buyer pays you $1,070 after deducting their fees, do not subtract the $30 a second time.

Did you buy gold and silver on the same invoice with $20 delivery? Allocate those fees in proportion to the amounts. For example, for $600 of gold and $400 of silver:

Always use the same method so your calculations remain comparable.

If you sell part of a batch, count only the cost of the portion sold.

Example: you bought 10 identical coins for $1,020, or $102 per coin. You sell 3 for a net price of $330.

A rise in the metal quote increases your estimated profit, but you only make money when you sell. To sell under suitable conditions, read our tips for selling gold.

Examples use US dollars. The formulas work in any currency, provided purchase costs, metal quotes, and sale proceeds use the same currency. Metalstat lets you display values in USD, EUR, MAD, GBP, or CHF; not every currency is available in the app.

Gold prices are often quoted per troy ounce. One troy ounce is approximately 31.1035 g: divide the price per troy ounce by 31.1035 to obtain the price per gram, then apply fineness and quantity. Do not use an ordinary ounce.

Gold purity is expressed in karats (K). 14K is common in the United States, 18K is widely used in Europe, and 22K–24K is popular in parts of Asia and the Middle East; practices vary by market and product. International marks include “750” or “18K” and “585” or “14K”. An eagle's head is a French hallmark example, not a worldwide requirement, and a mark alone does not prove authenticity.

Tax, identification, payment, and selling rules vary by country and, in the United States, by state. Check with your local tax administration and other relevant authorities, or consult a qualified local professional. Do not assume a rule from another country applies to your sale.

Is the value shown at today's quote my profit? No. It is an estimate of your items' metal value. Real profit is calculated from an actual sale price, after fees.

Is the formula the same for gold and silver? Yes. Only the amounts, fees, and supporting documents change.

Should I count storage fees? You can include them if you want a complete calculation, for example the rental of a safe deposit box. In that case, do it the same way for all your items.

How do I calculate profit if I bought my coins at different prices? Keep each purchase on a separate line with its own cost. When selling, indicate which purchase the sold coins came from.

Do I need to declare profit from a gold sale? Tax and selling rules vary by country and state. This calculation is before tax. Check with your local tax administration or a qualified professional before selling.

Real profit is the net sale price minus the total purchase cost, including fees. Count each fee only once, account only for the sold portion of a batch, and distinguish estimated profit from realized profit. With Metalstat, you record your purchases and sales, and the calculation is done automatically.